5 Tips on Buying Business Insurance
If you own your own business, whether it's a small business, a home business or a large business, one serious allegation could jeopardize everything you've worked for. Business Insurance is no longer an option in the US, its peace of mind that what you've worked so hard for does not get exposed to risk. Protect your business assets against damage or theft, as well as protecting yourself against liability claims from your clientele & protecting yourself from employees who may have a legitimate claim for at work injury against you.
Here are 5 Tips to save you money on your Business Insurance:- Home business - In the case where you run your business at home, the biggest risk is loss or damage to your home business equipment. Often, this will mean insurance on your technology (computers or other equipment) and business assets (like your fax machine). Keep in mind your conventional home insurance policy will not always give you enough protection for expensive possessions like computer hardware & software or particular machinery. Additionally, liability insurance, in the case where you are providing a service to clients, is crucial. Business Insurance can protect you if a client decides to sue you if a project goes erroneous or if there is damage in the product you produced or created. Liability insurance will protect your personal assets in both these cases.
- Workers' Compensation - Workers comp. business insurance that provides medical and disability coverage for employees who sustain job-related injuries. At the very minimum, workman's comp. insurance policy covers an employee's medical expenses and reimbursement of a percentage of lost wages. Most businesses are required by state law to carry Workers' Compensation insurance. Some states have developed state funds, or pools, for Workers' Compensation insurance, but in most states, businesses must find a private carrier for this type of business insurance policy and quotes vary greatly depending on insurers. Employers' Liability insurance (which is one portion of a standard Workers' Compensation policy) protects companies against the costs of defending employment-related claims brought by employees for work-related injuries or illness. Remember, just because your state may not require you to carry workers compensation does not relieve you of the responsibility if an injury or death occurs. Another option in many states is self insuring your company to cover the costs from employee injuries or death. Finally, business can usually select the amount of Employers' Liability coverage necessary, so doing the necessary homework and shopping around for workers' compensation insurance quotes is wise.
- Errors and omissions insurance (or E&O insurance) isn't just for doctors and lawyers anymore. Every service professional, from contractors to software engineers, should consider carrying E&O liability insurance. Errors and omissions coverage is supplementary liability insurance that augments one's business owner policy. E&O insurance covers financial losses and expenses generated by client claims of error, omission, or negligence. It also can protect against slander, libel, and breach of contract. E&O liability policies typically have a claim limit and an annual limit, based on the policyholder's liability exposure. The claim limit is the maximum that will be paid for any single event, while the annual is the maximum that will be paid in any one year. E&O insurance is a serious investment. Select highly rated providers graded "A" to "AAA" by companies such as A.M. Best and Standard and Poor's. Carefully consider your professional liability exposures before selecting a E&O insurance policy. There are many industry-specific and specialized forms from which to choose.
- Business owner policies (BOPs) - like general property insurance coverage, the property portion of the BOP offers named perils or all risk coverage. Some policies will even include other types of property-related insurance such as extra expense policies as part of the package. The liability portion of a BOP is structured quite similarly to a stand-alone Commercial General Liability (CGL) policy. The primary difference: A BOP gives you much less flexibility in determining your coverage limits for particular claims. It's important, however, to note that a BOP does not include professional liability insurance, which protects you from losses or expenses resulting from claims of errors or omissions or negligence in your business. Carefully review each policy's coinsurance requirements as well as coverage limits. Be aware that BOP liability does not include professional liability insurance, protecting against claims of negligence.
- Risk assessment - Think about the level of risk your business poses as well as how much your assets are worth before deciding how much business insurance cover you need. If you under-insure your assets your business insurance might not cover your losses if a claim is made against you. The excess is the first part of every claim that you have to cover yourself. You can often reduce your business insurance premiums by agreeing to a higher deductible. Additionally, understanding your .business insurance policy conditions, exclusions and warranties is vital since some policies are dependent on your equipment meeting certain standards, your staff being trained to a certain level or ensuring you have an alarm & adequate security / lightning.
- Business Owners Insurance
- Directors & Officers (D&O) Insurance
- Errors & Omissions (E&O) Insurance
- Professional Liability Insurance
- Malpractice Insurance
- Workmans Compensation
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